Cheap-Talk Coordination of Entry by Privately Informed Firms
AbstractI analyze and compare the effects of sequential and simultaneous cheap-talk communication (e.g., preannouncement of entry) among privately informed potential entrants who then play a normal-form entry game. The first main result is that cheap-talk communication is powerful enough to enable the potential entrants to coordinate on an efficient outcome for each and every contingency. The second is that sequential cheap talk is more dextrous in this task in the sense that it can generate a greater variety of efficient outcomes than simultaneous cheap talk. The precise extent to which it does so is also explained.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 33 (2002)
Issue (Month): 3 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chirantan Ganguly & Indrajit Ray, 2013. "Coordination and Cheap Talk in a Battle of the Sexes," Discussion Papers 13-01, Department of Economics, University of Birmingham.
- Chirantan Ganguly & Indrajit Ray, 2013. "Information-Revelation and Coordination Using Cheap Talk in a Battle of the Sexes with Two-Sided Private Information," Discussion Papers 13-01r, Department of Economics, University of Birmingham.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.